An “NGO Working Group on CTT for FfD” resolved to organise for a currency transaction tax to finance development. The campaign is called “the CTT for FfD Campaign” in the context of the Monterrey Consensus Review Process and it aims to get into the final text at the next Doha trade talks a firm commitment on the implementation of a currency transaction tax (CTT) “as well as details of mechanisms enabling progress to be made, as globally as possible, towards its implementation.”
The Campaign noted support for this at high levels including the Secretary-General of the UN. This renewed international interest, the campaigners believe, makes currency-transaction “development levy” of 0.005 percent possible. It proposes a minuscule tax that is not expected to materially affect market operations while having the potential to generate billions of dollars that can be allocated for development. OECD countries are already raising substantial amounts of revenue on various types of financial transactions taxes with no apparent negative impact on financial markets. The international financial system already has clearing and settlement mechanisms that can manage the collection of this levy at low cost for any one country unilaterally. The difference is that, by its nature, currency transaction taxes involve more than one country, being levied on exchanging the currency of one country for another. Thus, these are taxes that are best implemented in a cooperative manner among countries.
You are called to read more and endorse the campaign by going to www.cttforffd.net. Our thanks must go to the UBUNTU – World Forum of Civil Society Networks which took this brave initiative. There are many other useful resources on their website including a statement on the world food crisis.